The ACA Isn't Dead Yet - Filing Deadline is Mar. 2

While the new tax reform law will mean major changes, businesses still have to report for the Affordable Care Act for tax year 2017. The Affordable Care Act (ACA) year-end filing deadline for providing 1095 forms to recipients is Jan. 31, 2018 (The IRS has extended the deadline to March 2, 2018) – its earliest deadline since ACA reporting became mandatory.

In addition to this change, businesses continue to be responsible for all other existing January deadline deliverables, making it even more imperative to get a jump start on preparing for the upcoming reporting season.

Now in its third year, the ACA has thrown a lot of different tracking and reporting elements at businesses. Many employers and insurers must file information on healthcare plan coverage with the IRS, as well as provide copies to plan recipients.

To ensure filers remain on track with timing and compliance, Greatland Corporation, one of the country’s leading providers of W-2, 1099 and 1095 products for businesses, is providing a brief outline businesses can follow to stay up-to-date and avoid penalties.

Starting in late 2017, the IRS will start issuing notices to those who may owe an ACA penalty known as the Employer Shared Responsibility Payment (ESRP). The notice relates to calendar year 2015 for failure to offer affordable minimum value coverage to employees and dependents. This notice is expected to continue into the future and is yet another potential filing penalty businesses should note.

There are two scenarios that require businesses to file ACA forms: Employers with 50 or more full-time employees (including full-time equivalent employees (FTEs)) and all self-insured employers regardless of size must report healthcare coverage information to employees and the IRS.

The federal filing deadlines for ACA reporting are consistent with W-2 and 1099 reporting, and all forms should be mailed to recipients by January 31, 2018.

As businesses work toward the January deadline, it is imperative to understand the following forms when completing ACA reporting:

Form 1095-B – Health Coverage

This form includes the number of months individuals were covered by insurance. For individuals who purchased private insurance, the provider will send this information to the IRS.

Form 1095-C – Employer-Provided Health Insurance Offer and Coverage

This statement is issued by employers with 50 or more full time employees (including FTEs) to employees and the IRS to prove they provided healthcare coverage per ACA requirements.

Form 1095-B and Form 1095-C will require some or all of the following data: employer ID numbers (EIN), taxpayer identification numbers (TIN) of employees/recipients and their dependents, addresses, and months of coverage.

Due to the Protecting Americans from Tax Hikes (PATH) Act enacted in December, 2015 which is aimed at making it easier for the IRS to detect and prevent refund fraud, employers are now required to file W-2s by Jan. 31, 2018. An extension will only be permitted when filing W-2s in extraordinary circumstances or catastrophe. The accelerated deadline allows the IRS to identify errors when reporting and will improve their ability to verify the legitimacy of tax returns and resulting refunds.

While the Jan. 31 deadline has applied to employers for many tax reporting responsibilities, businesses and payroll professionals need to be aware of the added ACA deliverables for January in order properly plan for the busy month and remain compliant through 2018.

For more information about the Jan. 31 ACA filing deadline, visit http://yearli.greatland.com/Content/Affordable_Care_Act